All About Mortgage Protection Payment Insurance

By Author: Shourya Ray Chaudhuri
Total Articles: 598
Comment this article

The MPPI (Mortgage Protection Payment Insurance) covers the interest payments of mortgage if you're left without the power to work due to an accident or disease, or if you lose your employment. It may also reduce the risk of your home being taken away. A good quality of MPPI policy will begin to cover mortgage payments within a single month of involuntary excess or a bad health occurrence. Coverage usually stays till 12 months in which it hopes that the majority of the creditors will identify a new source of income or become physically fit.

The mortgage protection payment insurance policies cover interest on your mortgage credit in specified period of time, normally between 12 and 24 months. They do not include repayment of capital. Many policies are able to exclude period, generally about 60 days after the insurance policy is first taken out. At this time you can not make a claim for unemployment, while you still remain covered in an accident or disease. Generally there is a waiting period; again of about 60 days although in certain cases it may be less before any payment of claims are done. So even if you have MPPI, ...
... then also you need sufficient cash kept aside to cover the mortgage repayment by two months.

If you would fight for payment of mortgage without any income, and then MPPI should be suitable for you. However, there may be other insurance coverage to replace and that will allow you to the maturity period, such as protection of income or cover of a critical disease. That critical sickness insurance, as an alternative, can be achieved with substantial savings or investment and that could back you, to your employer may provide some help as illness or accident coverage. It is however, necessary to be realistic about your ability to pay your mortgage if you find fired out of a job for a long period of time. Check to see if you already have the right to pursue the MPPI. Some of the policies keep-out people who are self employed or for a specific term of the contract; even the others exclude those who have certain preliminary existing health conditions.

If you are taking new mortgage, it is likely that you will be offered MPPI by your lender. However, as in the case with all financial things, it is shopping around for the best thing will be the wisest solution. The mortgage protection payment insurance policies are available from majority of insurers, banks and insurance brokers. In addition to this, to avoid mortgage debt, it is important always carefully examine the terms and conditions of the mortgage payment protection insurance policy to make sure that it provides coverage that are necessary.

Shourya Ray Chaudhuri, Ezine Articles Expert Author.For more information: Mortgage Protection Insurance
Get more information: Payment Protection Insurance